The Michigan Supreme Court's summer ruling on minimum wage and earned sick time has set off important conversations across our state. While we believe in fair wages and proper sick leave for workers, the ruling will create significant difficulties for businesses – particularly small and medium-sized ones – forcing them to make decisions that could very well hurt workers.
As advocates for the business community, the Lansing Regional Chamber of Commerce and Choose Lansing are committed to finding a solution that protects workers while also ensuring businesses can continue to thrive.
The new mandates may force businesses, especially those already facing tight margins, to reevaluate how they operate. The changes could lead to higher costs, reduced flexibility, and, in some cases, reductions in hours or staff. To avoid these unintended consequences, we believe there’s a need for sensible adjustments to the ruling that address these challenges while still promoting workers' rights.
We are advocating for the Michigan State Legislature to enact six key changes:
- Exempt plans that already meet the mandated 72 hours : Companies that provide equal or greater benefits than the 72-hour requirement should be exempt from additional mandates to avoid disruption to employees’ generous paid time off policies.
- Exempt small businesses and certain workers : Small businesses, along with part-time, seasonal, and temporary workers, should be exempt to avoid unnecessary strain on businesses that operate with smaller margins.
- Allow time off in full- or half-day increments : Requiring sick time to be taken in half-day increments ensures operational efficiency for businesses while still respecting workers’ needs. As written, the ruling would require businesses to allow employees to take time off in as little as one- or six-minute increments, which is simply unworkable.
- Remove language allowing for a private right of action and rebuttable presumption. No other state has a rebuttable presumption, creating a disincentive to hiring and entrepreneurship in Michigan. Enforcement and penalties should be handled by the state.
- Allow employers to frontload time off : Frontloading the 72 hours of sick time at the start of the year simplifies the process and allows employees more flexibility, without the complexities of tracking accrual systems.
- Support a responsible increase in the minimum wage with tip credit : We stand with the Michigan Restaurant and Lodging Association (MRLA) and others in the food and beverage industry in supporting a responsible minimum wage increase that maintains the tip credit, striking a balance between fair pay and the realities of the hospitality industry.
Our proposals seek to strike a balance between protecting workers and ensuring businesses can adapt without devastating financial consequences. We urge our elected state leaders to engage with us and local business owners to create legislative solutions that are fair for both employers and employees.
We look forward to working together to foster a healthy, competitive business environment in Greater Lansing. By finding a sensible middle ground, we can continue building a community where both businesses and workers thrive.
Tim Daman is president and CEO of the Lansing Regional Chamber of Commerce. Julie Pingston is president and CEO of Choose Lansing.
This article originally appeared on Lansing State Journal: Viewpoint: Reasonable changes to mandates would benefit workers' rights and small businesses
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